Press Releases

2.5 million working households to be impacted by Universal Credit cut and National Insurance increase

On average household will lose £1290 next year from a combination of these policies

New analysis from the New Economics Foundation (NEF) shows that 2.5 million working households will be affected by both the cut to Universal Credit and increase in national insurance. On average, they will lose out by £1290 in 2022/​23.

Sarah Arnold, Senior Economist at NEF said:

Our analysis shows that 2.5 million working families on low incomes will lose £1290 of their incomes next year if cuts to Universal Credit and rises to National Insurance go head. This is not a progressive solution to funding social care.

We absolutely need a plan to sustainably fund a high-quality social care service for the country in the long term but we should be asking more from those with greater wealth and who are most likely to benefit from an improved social care system in the coming years, by better aligning taxation of capital gains and dividends with taxation of earnings.”


Sofie Jenkinson,, 07981023031

Notes to editors
Calculation uses IPPR tax benefit micro simulation model based on FRS data comparing: — Baseline: £20 uplift maintained, no change to NI/​dividend tax in 2022/​23 — Comparison: £20 uplift cut, 1.25% increase on NI and dividend tax (as set out in https://​assets​.pub​lish​ing​.ser​vice​.gov​.uk/​g​o​v​e​r​n​m​e​n​t​/​u​p​l​o​a​d​s​/​s​y​s​t​e​m​/​u​p​l​o​a​d​s​/​a​t​t​a​c​h​m​e​n​t​_​d​a​t​a​/​f​i​l​e​/​1​0​1​5​7​3​6​/​B​u​i​l​d​_​B​a​c​k​_​B​e​t​t​e​r​-​_​O​u​r​_​P​l​a​n​_​f​o​r​_​H​e​a​l​t​h​_​a​n​d​_​S​o​c​i​a​l​_​C​a​r​e.pdf)

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